Integral Technologies, Inc. (OTCPK:ITKG) announced that it has entered into securities purchase agreements with SBI Investments LLC, a fund managed by SBI Investments LLC for private placement of original issue discount convertible notes for gross proceeds of $515,000 on May 18, 2017. The notes carries principal amount of up to $604,227 and carries an original issue discount of 14.7671%. The company will also issue 4,255,118 warrants to purchase common shares of the company at a price of $0.055 per share for a period of seven years. The notes bear a fixed interest at a rate of 8% per year and a default interest rate of 24% per year. The notes contain a 9.99% beneficial ownership limitation and may be converted by the holder at any time following an event of default. The notes mature in six months from issue date. The notes are convertible into common shares of the company at a conversion price equal to the product of 0.675 multiplied by the average of the two lowest trading prices for the company’s common stock during the 20 trading day period ending on the last complete trading day prior to the date of conversion. The notes may be prepaid at any time during the 90 days following May 25, 2017 at a rate of 120% of the amounts outstanding and prepaid at any time after the 90 day period at a rate of 140% of the amounts outstanding. The company may redeem a warrant at any time during the 12 month period immediately following the issue date, by making payment to the holder of an amount in cash equal to the greater of 140% multiplied by 110% of the closing bid price of the common stock on the issuance date and 140% multiplied by the volume weighted average price of the common stock during the 20 trading days immediately preceding the date of holder’s receipt of the redemption notice. If the highest traded price of the common stock during the 30 trading days prior to the date of an exercise of notice is greater than the exercise price, then the holder may elect to exercise the warrant pursuant to a cashless exercise. The transaction will be completed in multiple tranches. The company will pay $10,000 at the closing of the first tranche as investor’s legal fees.